Private insurance-linked securities news

As the catastrophe bond market continues to expand, these particular financial instruments continue to offer a sustainable opportunity for investors, while interest in private insurance-linked securities (ILS) is increasing as investors seek to further diversify within the asset class, according to Chris McAvoy, Head of alternatives research at JANA Investment Advisers Pty Limited.

Despite the softening of the reinsurance market seen at the January renewals, 2026 is still expected to be among the more profitable years in reinsurance, as still higher attachment points and improved portfolio quality will support returns, according to Euler ILS Partners, the Swiss specialist insurance-linked securities investment manager.

Despite a decrease in spread multiples, the private insurance-linked securities (ILS) market continues to remain attractive both in absolute terms and in comparison, to the catastrophe bond market, Stephan Ruoff from Schroders Capital told Artemis.

As the reinsurance sidecar market keeps growing, GC Securities is placing significant emphasis on this sector as a major focus for 2026, while the firm also sees a need for greater attention on helping clients secure aggregate capacity for secondary perils, executives from the firm told Artemis in a recent interview.

During an interview, executives at Howden Capital Markets & Advisory outlined how the catastrophe bond market has evolved into a well-established asset class that helps strengthen systemic resilience for public and private entities, while also acknowledging how private ILS continues to present attractive opportunities for cedants and investors heading into 1.1 and beyond.

The private insurance-linked securities (ILS) market is approaching the January renewals from a strong standpoint, with capacity projected to be marginally higher, which may exert some pricing pressure. However, according to Cahal Doris, CIO Private ILS at Twelve Securis, the firm still expects to observe technical discipline within the market.

Issuance of Rule 144A property catastrophe bonds in 2025 surpassed the $20 billion milestone today as the settlement of the largest wildfire cat bond ever seen, sponsored by the California FAIR Plan, has taken the total for the year-to-date to just over $20.7 billion, Artemis data shows.

Despite catastrophe bond risk spreads having tightened and reinsurance rates being expected to decline at the renewals, specialist insurance-linked securities manager Twelve Securis says the relative value of the ILS asset class remains compelling for investors with structural improvements set to persist.

With the settlement today of two new catastrophe bonds, the 144A marketplace for new cat bond issuance has now just reached the $20 billion milestone in 2025, while including private deals the total amount of settled issuance tracked by Artemis this year is now $20.62 billion.

Another new private catastrophe bond issuance from the Eclipse Re Ltd. transformer vehicle has come to light, the eighth from the platform in 2025 so far. At $100 million in size, this Eclipse Re Ltd. (Series 2025-8A) cat bond lite has become the biggest from the issuer this year.